Bank of Maharashtra offers multipurpose loans to farmers up to 10 Lakh at 2.5% interest








The lender can be an individual farmer or a joint/group of farmer-owner growers and JLGs/SHGs engaged in farming and related activities.





Bank of Maharashtra, popular for its lending programs for various needs of farmers, offers the Mahabank Kisan All Purpose Term Loan to help farmers succeed and double their income! If you or a farmer you know needs financial help to expand their farm, buy equipment or land, it is advisable to go to banks rather than loan sharks.












Here we have mentioned all the details of the loan program and a step by step guide to help you through the process.

What is the purpose of the loan?

The objective of the Mahabank Kisan All Purpose Term Loan is to create a single, hassle-free term loan limit for farmers for all term loan needs except development projects with long gestation periods of more than 3-4 years.

What are the eligibility criteria for the loan program?

The lender must be:

An individual farmer or a joint/group of farmer-owner cultivators and JLGs/SHGs engaged in agriculture and related activities.

How much amount is provided through this loan?

The loan amount will be based on the investment plan given by the farmer to be undertaken in the next 2-3 years.

The plan may be a combination of agriculture-related research/development and related activities.

It will be subject to 5 times the annual income (current pre-development stage) of the farmer, including related activities, or 50% of the value of the mortgaged land, whichever is lower, subject to a maximum of Rs 20 Lakh.












Mahabank Kisan All Purpose Term Loan Details:

Margin:

The limit is up to Rs 1.60 Lakh- NIL

Limit above Rs 1.60 Lakh – 15% to 25% (depending on purpose and amount of funding)

Interest rate:

The interest rate of the Mahabank Kisan all-purpose term loan is:

Up to Rs 10 Lakh: 1 Year MCLR + [email protected]% + 2%

Above Rs 10 Lakh: 1 Year MCLR + 0.50% BSS + 3%

Security:

Up to Rs 1.60 Lakh – Mortgage of assets created from bank financing

Above Rs 1.60 Lakh (Aggregate Limit) – Mortgage of the land, the value of the land must be at least 200% of the sanctioned limit.

Repayment: Repayable within a maximum of 9 years in appropriate installments coinciding with the farmer’s overall income generation, unrelated to individual projects.

Insurance: The assets created must be insured for their full value.

Other terms and conditions: The farmer must commit to create/complete the project within 15/30 days of receiving the disbursement.












Required Documents for Mahabank Kisan All Purpose Term Loan:

  • Borrowers will need the following list of documents to qualify for the loan:

  • The loan application form is Form No. 138 and Annex B2

  • No applicant’s certificate of contribution from surrounding financial institutions, including PACS

  • Legal search for a lawyer on the Bank’s panel for loans above Rs 1.60 Lakh where the land is to be mortgaged

  • Quotes / Plan estimates / Permissions, etc. depending on the purpose of the loan

  • Warranty Form F-138

How to apply Mahabank Kisan All Purpose Term Loan:

Visit the official website of Bank of Maharashtra or click on this link to go directly to the loan application page.

Fill in the details required to register for the loan by selecting the Mahabank Kisan All Purpose Term Loan in the “Select Program” section.

Then, in the next section, add your name, email address, and mobile number.












Next, add the ITR deposit category and PIN as well as the branch closest to you.

Next, you will need to provide the loan amount you need and answer the captcha on the form.

Click on the consent form and then on the Register Now button to register for the loan.

To know more about Mahabank Kisan All Purpose Term Loan, visit the official website of the Bank of Maharashtra.











First published: November 21, 2022, 06:02 IST


About Evelyn C. Heim

Check Also

NC Biotech Center awards over $1.4 million in grants and loans

RESEARCH TRIANGLE PARK – The North Carolina Biotechnology Center awarded 23 grants and loans totaling …